Schwab Order Execution Advantage™

When you place trades with Schwab, you're placing your trust in us. That's why we're committed to providing fast, quality executions with the highest level of transparency related to our performance, process, and practices.

Schwab Order Execution Advantage comes from Schwab’s regular and rigorous monitoring of order execution quality among competing market venues, and looking for opportunities to adjust our order routing based on performance trends, technological advances, and other competitive developments. It's part of our commitment to putting your interests first and also core to Schwab's Regulation NMS Equity Order Routing.

The Value of Schwab's Order Execution Quality

Obtaining high-quality executions on your orders, whether you’re buying or selling shares, may result in real savings.1

For example, here’s how we improved executions for market orders of 500-1,999 shares in S&P 500® stocks during the previous quarter. 

The Value of Schwab's Order Execution Quality

Investor's Business Daily 2021 Best Online Brokers Overall Award

Schwab ranked a Best Broker for Trade Reliability by Investor's Business Daily, 2020

Schwab ranked a Best Online Broker for Trade Execution Speed and Price by Investor's Business Daily, 2021

A greater level of transparency

Transparency and honesty are hallmarks of the way we do business. That's why we exceed basic industry disclosure requirements (learn more about Reg NMS Rules 605 and 606) and have chosen to participate in the Financial Information Forum Rule 605/606 Retail Execution Quality Working Group, whose goal is to provide retail investors with more visibility into execution quality.

See our retail execution quality statistics along with frequently asked questions about these measures.4

Learn more about how price improvement and the National Best Bid and Offer work.

Our advanced order routing process seeks to obtain high-quality execution results.

How we evaluate execution quality

Schwab rigorously and regularly monitors the quality of executions obtained from securities exchanges and liquidity providers to ensure that orders are routed to destinations that have provided high-quality executions over time.

Considering that no one sole metric defines execution quality, Schwab reviews a number of factors when making our evaluation, such as:

  • Execution price, speed, and accuracy
  • Market depth, order size, and trading characteristics of the security
  • Liquidity, automatic execution guarantees, and opportunities for price improvement
  • Service levels and the cost of executing orders

The execution quality statistics we review are provided by S3 Matching Technologies, a third party that conducts an independent analysis of our client executions. These results are used to evaluate the execution performance of securities exchanges and liquidity providers based upon similar order characteristics.

Why put your trust in trading with Schwab?

Schwab is committed to putting your interests first, and to transparency in our order routing practices, and execution quality performance. Our order routing process seeks to deliver high-quality executions through access to the best performing liquidity providers and exchanges.

Ready to start trading at Schwab?

Definitions

An Alternative Trading System (ATS) is an execution platform that brings together buyers and sellers of securities, similar to how orders are matched on an exchange. The system operator must be a licensed broker-dealer registered under SEC Rule ATS and must comply with various conduct and reporting requirements.

Liquidity providers are broker-dealers who execute orders based on their assessment of how to obtain the best executions. They may act as market makers and execute orders against their own account or route orders directly to other execution venues such as Alternate Trading Systems or securities exchanges.

market maker commits its own capital and stands prepared to buy and sell securities during the trading day at quoted prices.

Price improvement occurs when an order is executed at a price lower than the quoted offer when purchasing, or a price higher than the quoted bid when selling. The amount of price improvement per share may be less than the minimum quotation price increment (typically, one cent).

securities exchange is an entity that has registered with the SEC under the Securities Exchange Act of 1934 and facilitates the buying and selling of securities among market participants.



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